|
The FTSE 100 closed lower on Friday, with earlier growth stalling after news of lower US consumer sentiment and a tepid UK GDP reading. The FTSE 100 index closed down 14.29 points, 0.2%, at 9,283.29. It had earlier traded as high as 9,340.70. The FTSE 250 ended 68.35 points lower, 0.3%, at 21,625.40 while the AIM All-Share finished up 1.34 points, 0.2%, at 768.44. For the week, the FTSE 100 was up 0.8%, the FTSE 250 advanced 0.2% and the AIM All-Share climbed 0.3%. The Cboe UK 100 ended down 0.1% at 931.01, the Cboe UK 250 closed 0.1% lower at 18,949.59 but the Cboe Small Companies finished up 0.6% at 17,199.66. The UK economy kicked off the third quarter of the year with a ‘summer slowdown’, raising the risk that gross domestic product growth falls short of the Bank of England’s forecast. The UK economy registered no growth in July, as expected, numbers showed. According to the Office for National Statistics, the UK economy tread water in July, an outcome in line with consensus, after gross domestic product advanced 0.4% in June from May. Deutsche Bank analyst Sanjay Raja believes the data is evidence of a ‘summer slowdown setting in’. The German bank had expected a decline for the month, however, so the reading was a little better than its forecast. Lloyds Bank said July’s data reflected a ‘payback’ from a solid June, but momentum coming out of the second quarter should allow the economy to register growth in the new quarter. In better news for the government, OpenAI and Nvidia are reportedly planning to unveil billions of dollars of investment into UK data centres when they accompany US President Donald Trump on his state visit next week. Sam Altman, the chief executive officer of ChatGPT maker OpenAI, and chipmaker Nvidia’s CEO Jensen Huang are understood to be working with London-based data centre business Nscale Global Holdings Ltd on the project, as first reported by Bloomberg. In New York, at the time of the London equities market close, the Dow Jones Industrial Average was down 0.4%, the S&P 500 was little changed and the Nasdaq Composite was 0.4% higher. The mixed showing on Wall Street followed strong gains on Thursday and a survey showing a drop in consumer sentiment. Survey data from the University of Michigan showed consumer sentiment deteriorated in early September, with Americans growing more pessimistic about future economic conditions and their personal finances. The Index of consumer sentiment fell to 55.4 in the preliminary September reading from 58.2 in August, a 4.8% month-on-month decline and down 21% from 70.1 a year ago. The decline was ‘particularly strong among lower and middle income consumers,’ said Joanne Hsu, director of the Surveys of Consumers. The Index of consumer expectations dropped to 51.8 from 55.9 in August, falling 7.3% on the month and down over 30% year-on-year. The current conditions index edged down more modestly to 61.2 from 61.7, 3.3% below the September 2024 level. In Europe, the CAC 40 in Paris ended slightly higher, up 0.1%, while the DAX 40 in Frankfurt closed marginally lower. On the FTSE 250, JTC jumped 16% on the prospect of a bidding war as it said it was in early-stage discussions regarding possible offers with Warburg Pincus and Permira Advisers. The Jersey-based professional services company said it had previously rejected two approaches from Warburg Pincus but had now received a third proposal. JTC said it has also received a revised fourth proposal from Permira, after spurning three others. Hatfield, England-based retail technology firm Ocado Group tumbled 20% after major Cincinnati, Ohio-based partner Kroger said it would take a ‘hard look’ at its automated warehouse technology. Ocado launched a significant partnership with Kroger, one of the largest supermarket chains in the US, in 2018. Initially, the firms agreed to build the equivalent of 20 customer fulfilment centres, where automated robots sort orders, but have so far opened eight sites. A further two are expected to open in the current financial year. However, on Thursday evening, bosses at Kroger told investors in the US they are reviewing their use of the automation technology as it seeks to reduce costs and improve profitability. Elsewhere, retailer WH Smith fell 2.8% after Berenberg cut the stock to ’hold’ from ’buy’. SSP rose 2.3% after the German bank raised the Upper Crust owner to ’buy’ from ’hold’. Meanwhile, Big Technologies slid 11% after the provider of electronic monitoring solutions reported new revelations against its former chief executive, including possible forgery of documents, which have ‘material’ adverse implications for its position in an ongoing litigation. Big Technologies said ‘further very serious matters’ have come to light regarding the conduct of Sara Murray and persons associated with her. As a result, the company is seeking to expand its claim against Murray and others as part of a ‘strengthened case.’ The company said Murray has denied the allegations, although ‘no substantive explanation has been provided to date.’ The pound eased to $1.3551 late on Friday afternoon in London, compared to $1.3578 at the equities close on Thursday. The euro ebbed to $1.1719, against $1.1743. Against the yen, the dollar was trading higher at JP¥147.83 compared to JP¥147.06. The yield on the US 10-year Treasury was quoted at 4.08%, widened from 4.02% on Thursday. The yield on the US 30-year Treasury was quoted at 4.70%, stretched from 4.67%. A barrel of Brent traded at $67.52 on Friday afternoon, up from $66.42 on Thursday. Gold firmed to $3,644.61 an ounce on against $3,636.97 on Thursday. The biggest risers on the FTSE 100 were Beazley, up 22.50p at 814.50p, Babcock International, up 27.00p at 1,157.00p, Centrica, up 3.35p at 160.35p, Associated British Foods, up 35.50p at 1,970.50p and BAE Systems, up 33.50p at 1,981.00p. The biggest fallers on the FTSE 100 were JD Sports Fashion, down 2.00p at 90.52p, Diageo, down 37.00p at 1,869.00p, Fresnillo, down 40.00p at 2,156.00p, Hikma Pharmaceuticals, down 28.00p at 1,632.00p and Ashtead, down 78.00p at 5,314.00p. Monday’s local corporate calendar has half-year results from advertising firm S4 Capital. Later in the week results are due from retailer Next and housebuilder Barrett Redrow. The global economic calendar on Monday has a slew of data in China, including retail sales and industrial production figures. The week also sees interest rate decisions in the US, UK, Japan and Canada. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
